Study On The Supervision And Management Mode Of The Fund On The Internet Lending Platform

This paper has analyzed the fund management mode of P2P lending platforms,which is an important factor for investors to choose from P2P platform.It can be divided into the following three types:fund self-operation,fund deposit management and bank trusteeship.Then I comb the development of the fund management model of P2P lending platforms,revealing that the implementation of fund custody can separate the user funds from P2P platform's own funds so as to effectively prevent the P2P platform from misappropriating investors' funds.Then I empirically examine the impact of the implementation of fund custody on the performance of the P2P platforms.Based on the monthly transaction data and background information from P2P platforms in China,I find that those P2P platforms which get users' funds mandated have significantly higher trading volumes and faster transaction speed than that of others.The custody of user' funds can effectively circumvent the risk of P2P lending platform and thus make it more attractive to investors.Finally,this paper comes up with a summary and proposes some suggestions for the rational development of the P2P lending industry from the perspective of fund deposits.